Connecticut Senate Bill SB00025

Connecticut 2021 Regular Session

• Introduced: 1/8/21
• Refer: 1/8/21

Caption

An Act Requiring Homeowners Insurance Coverage For The Peril Of Collapse And Certain Structural Mitigation.

Impact

The introduction of SB00025 represents a significant shift in homeowners insurance regulations, which historically may not have provided comprehensive coverage for structural collapse. This change is expected to fortify homeowners’ financial protection against property loss due to unforeseen structural failures. Insurance companies may need to adjust their policy offerings and premium structures to comply with this requirement, potentially leading to changes in insurance market dynamics within the state.

Summary

SB00025 is an act formulated to mandate coverage for the peril of collapse in homeowners insurance policies. Specifically, the bill aims to ensure that homeowners are protected against structural failures that could render their properties unsafe or uninhabitable. Alongside coverage for collapse, the bill also emphasizes the importance of including mitigation efforts that homeowners undertake to prevent such occurrences. By integrating these elements, the bill seeks to enhance the overall safety and security of residential properties within the state.

Contention

While the intent of SB00025 is to protect homeowners, there might be concerns regarding the implications on insurance costs and the potential burden on insurers to adapt their policies. Some stakeholders may worry that the increased requirement for coverage could lead to higher premiums, making it more challenging for some homeowners to afford adequate insurance. Additionally, discussions might arise around what constitutes 'collapse' and the specifics of 'mitigation,' which could lead to disputes over policy interpretations and claims.